As expected, the final quarter of 2014 brought a further slowdown in activity in the prime London residential sales market. On the buying side, applicants were 24% down on the preceding quarter, viewings were 11% lower and exchanges fell by 7%.

Vendors displayed a similar reluctance to market their properties (new instructions and appraisals were respectively 37% and 29% lower than in Q3) which resulted in quarter-end available stock dropping by 12.5% over the quarter. For the year as a whole, the decline was less dramatic thanks to the strong first quarter performance.

On a more encouraging note, the number of fall throughs fell by 24% on a quarterly basis. This is arguably a reflection that although numbers were down, those buyers that were in evidence were more committed and perhaps attracted by the prospect of negotiating a more favourable sale price in a softening market.